Entergy's Eternal Power Struggle: MISO Move Decades in the Making

by Luke Jones  on Monday, Nov. 26, 2012 12:00 am  

Years of controversy and litigation have led to Entergy Corp. joining a regional transmission operator, which manages Entergy’s power lines, and selling the lines themselves to a third party, ITC Holdings Corp. 

As far as benefits to ratepayers, Entergy Arkansas expects to save about $250 million over a period of 10 years due to the MISO move.

On day one, McDonald said, the ITC and MISO deals won’t significantly change bills. Over a longer period, however, the MISO benefits, as well as the end of the FERC-imposed payments, should lower costs, he said. Those payments will end in January 2014.

“Entergy operating companies will be realizing the savings through the wholesale markets,” Hillman said. “In a wholesale, nondiscriminatory type of market, those savings are passed onto ratepayers.”

And the name on the energy bill for Entergy’s current customers in Arkansas?

“We’ll still be Entergy Arkansas,” McDonald said. “We’ll still be a subsidiary of our parent company, Entergy Corp. We’ll just be operating under a different agreement.”

Entergy Arkansas Timeline

1913
Arkansas Power Co. founded by Harvey Crowley Couch.

1914
Couch changes company’s name to Arkansas Power & Light Co.

1949
AP&L joins with Louisiana Power & Light, Mississippi Power & Light and New Orleans Public Service Inc. to create Middle South Utilities.

1951
AP&L enters system agreement, which sets terms and conditions on how Middle South companies plan for long-term generation and transmission, regulated by the Federal Energy Regulatory Commission.

1967
Arkansas Nuclear One announced for construction in Russellville.

1982-84
FERC assigns AP&L 36 percent of construction costs for Mississippi’s Grand Gulf Nuclear Station in Port Gibson, Miss., increasing bills for Arkansas ratepayers. Questions raised on how costs are allocated among companies in the system agreement.

 

 

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